Ocean Power Technologies Announces First Quarter Fiscal 2022 Results
Ocean Power Technologies (OPTT) reported a revenue increase to $0.3 million for the first quarter of fiscal year 2022, up from $0.2 million in the prior year, driven by growth in Strategic Consulting Services post-3Dent acquisition. The company narrowed its net loss to $3.0 million, aided by gains from PPP loan forgiveness and tax benefits. Cash reserves stood at $78.3 million as of July 31, 2021. OPTT is advancing its transformation into a services provider, focusing on innovative maritime solutions, and has secured a DOE award for next-generation wave energy technology.
- Revenue increased to $0.3 million from $0.2 million year-over-year.
- Net loss decreased to $3.0 million from $3.4 million year-over-year.
- Cash position strong at $78.3 million.
- Received U.S. Department of Energy award for wave energy technology.
- Steady growth in Strategic Consulting Services post-3Dent acquisition.
- Increased net cash used in operating activities to $5.3 million, up by $2.6 million from the previous year.
Investor Conference Call and Webcast on September 14, 2021, at 11:00 A.M. ET
MONROE TOWNSHIP, N.J., Sept. 13, 2021 (GLOBE NEWSWIRE) -- Ocean Power Technologies, Inc. ("OPT" or "the Company") (NYSE American: OPTT), a leader in innovative and cost-effective low-carbon marine power, data, and service solutions, today announced financial results for its first quarter, ended July 31, 2021.
Recent Operational Highlights
- Received a U.S. Department of Energy Small Business Innovation Research award to study a modular and scalable next generation autonomous wave energy device
- Entered into strategic partnerships with software and robotics developers, Greensea and Fathom5, and initiated development of proprietary next-generation Maritime Domain Awareness Solution (“MDA”) platform
- Strategic Consulting Services driven by the 3Dent Technology acquisition showed steady growth as customer base continues to expand
- Received permits for offshore demonstration fields (located off the coast of New Jersey) and received delivery of first MDA test buoy
- Added to the Russell Microcap® Index
- Appointed Philipp Stratmann as President and Chief Executive Officer
Management Commentary
"We made great progress during the quarter as we continue our strategic transformation from a research and development product-based company to a data and power services’ and solutions’ provider,” said Philipp Stratmann, OPT’s President and Chief Executive Officer. "I am excited about OPT’s future,” Stratmann continued. “Not only have our Strategic Consulting Services seen steady growth since the acquisition of 3Dent, but we have also made substantial progress on the data and power services’ and solutions’ front. We’ve partnered with experienced developers to offer a leading-edge proprietary Maritime Domain Awareness platform that features analytic capabilities and military-grade cybersecurity.” Stratmann concluded, “With the addition of the U.S. government's investment in our next generation of wave energy conversion, OPT is anticipating the needs, and is at the forefront of, the ever-evolving markets we serve and seek to serve."
First Quarter Fiscal Year 2022 Financial Review
Revenue for the first quarter of fiscal year 2022 was
Balance Sheet and Cash Flow
Total cash, cash equivalents, and restricted cash was
Conference Call & Webcast
OPT will host a conference call and webcast to review its financial and operating results on Tuesday, September 14, 2021, at 11:00 A.M. Eastern Time. Interested parties may access the conference call by dialing 877-407-8291 (toll-free in the U.S.) or 201-689-8345 for international callers. Investors, analysts, and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call available on the Company's website at www.OceanPowerTechnologies.com/investor-relations.
A digital replay will be available by telephone approximately two hours after the call's completion and until December 14, 2021. Access by dialing 877-660-6853 from the U.S. or 201-612-7415 for international callers and using the Conference ID#13694019. The archived webcast will also be available on the OPT website investor relations page.
About Ocean Power Technologies
Headquartered in Monroe Township, New Jersey, OPT aspires to transform the world through durable, innovative, and cost-effective marine energy, data, and service solutions. Its PowerBuoy® solutions platform provides clean and reliable electric power and real-time data communications for remote maritime and subsea applications in markets such as offshore oil and gas, defense and security, science and research, and offshore wind. To learn more, visit www.OceanPowerTechnologies.com.
Forward-Looking Statements
This release may contain forward-looking statements that are within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by certain words or phrases such as "may", "will", "aim", "will likely result", "believe", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", "seek to", "future", "objective", "goal", "project", "should", "will pursue" and similar expressions or variations of such expressions. These forward-looking statements reflect the Company's current expectations about its future plans and performance. These forward-looking statements rely on a number of assumptions and estimates that could be inaccurate and subject to risks and uncertainties. Actual results could vary materially from those anticipated or expressed in any forward-looking statement made by the Company. Please refer to the Company's most recent Forms 10-Q and 10-K and subsequent filings with the U.S. Securities and Exchange Commission for further discussion of these risks and uncertainties. The Company disclaims any obligation or intent to update the forward-looking statements in order to reflect events or circumstances after the date of this release.
Financial Tables Follow
Additional information may be found in the Company's Annual Report on Form 10-K that has been filed with the U.S. Securities and Exchange Commission. The Form 10-K is accessible at www.sec.gov or the Investor Relations section of the Company's website (www.OceanPowerTechnologies.com/investor-relations).
Ocean Power Technologies, Inc. and Subsidiaries
Consolidated Statements of Operations
(in
Unaudited
| Three months ended July 31, | |||||||||||
| 2021 | 2020 | ||||||||||
| Revenues | $ | 272 | $ | 169 | |||||||
| Cost of revenues | 423 | 334 | |||||||||
| Gross loss | (151 | ) | (165 | ) | |||||||
| Operating expenses: | |||||||||||
| Engineering and product development costs | 1,961 | 1,252 | |||||||||
| Selling, general and administrative costs | 2,919 | 1,987 | |||||||||
| Total operating expenses | 4,880 | 3,239 | |||||||||
| Operating loss | (5,031 | ) | (3,404 | ) | |||||||
| Interest income, net | 20 | 11 | |||||||||
| Gain on extiguishment of PPP loan | 891 | - | |||||||||
| Foreign exchange gain | - | 8 | |||||||||
| Loss before income taxes | (4,120 | ) | (3,385 | ) | |||||||
| Income tax benefit | 1,041 | - | |||||||||
| Net loss | $ | (3,079 | ) | $ | (3,385 | ) | |||||
| Basic and diluted net loss per share | $ | (0.06 | ) | $ | (0.22 | ) | |||||
| Weighted average shares used to compute | |||||||||||
| basic and diluted net loss per share | 52,458,011 | 15,677,331 | |||||||||
Ocean Power Technologies, Inc. and Subsidiaries
Consolidated Balance Sheet
(in
| July 31, 2021 | April 30, 2021 | |||||||||
| (Unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 77,720 | $ | 83,028 | ||||||
| Restricted cash, short-term | 384 | 384 | ||||||||
| Accounts receivable | 446 | 350 | ||||||||
| Contract assets | 304 | 190 | ||||||||
| Other current assets | 507 | 487 | ||||||||
| Total current assets | 79,361 | 84,439 | ||||||||
| Property and equipment, net | 373 | 406 | ||||||||
| Intangibles, net | 268 | 274 | ||||||||
| Right-of-use asset, net | 967 | 1,036 | ||||||||
| Restricted cash, long-term | 222 | 222 | ||||||||
| Total assets | $ | 81,191 | $ | 86,377 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 454 | $ | 687 | ||||||
| Accrued expenses | 1,821 | 1,881 | ||||||||
| Right-of-use liability, current portion | 317 | 347 | ||||||||
| Litigation payable | - | 1,224 | ||||||||
| Liability classified stock awards | 60 | 60 | ||||||||
| Paycheck protection program loan- current | - | 495 | ||||||||
| Total current liabilities | 2,652 | 4,694 | ||||||||
| Paycheck protection program loan, less current portion | - | 396 | ||||||||
| Right-of-use liability, less current portion | 774 | 819 | ||||||||
| Total liabilities | 3,426 | 5,909 | ||||||||
| Commitments and contingencies | ||||||||||
| Stockholders' Equity: | ||||||||||
| Preferred stock, | ||||||||||
| none issued or outstanding | - | - | ||||||||
| Common stock, | ||||||||||
| issued and outstanding 52,458,011 shares | 52 | 52 | ||||||||
| Treasury stock, at cost; 21,040 shares | (338 | ) | (338 | ) | ||||||
| Additional paid-in capital | 316,211 | 315,821 | ||||||||
| Accumulated deficit | (237,975 | ) | (234,896 | ) | ||||||
| Accumulated other comprehensive loss | (185 | ) | (171 | ) | ||||||
| Total stockholders' equity | 77,765 | 80,468 | ||||||||
| Total liabilities and stockholders' equity | $ | 81,191 | $ | 86,377 | ||||||
Ocean Power Technologies, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in
Unaudited
| Three months ended July 31, | ||||||||||||
| 2021 | 2020 | |||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net loss | $ | (3,079 | ) | $ | (3,385 | ) | ||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
| Foreign exchange gain | - | (8 | ) | |||||||||
| Depreciation of fixed assets | 40 | 37 | ||||||||||
| Amortization of intangible assets | 6 | - | ||||||||||
| Amortization of right of use asset | 69 | 52 | ||||||||||
| Gain on extinguishment of PPP Loan | (891 | ) | - | |||||||||
| Stock-based compensation | 390 | 116 | ||||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | (96 | ) | 84 | |||||||||
| Contract assets | (114 | ) | (115 | ) | ||||||||
| Other assets | (20 | ) | 181 | |||||||||
| Accounts payable | (233 | ) | 8 | |||||||||
| Accrued expenses | (60 | ) | 381 | |||||||||
| Change in lease liability | (75 | ) | (54 | ) | ||||||||
| Contract liabilities | - | (34 | ) | |||||||||
| Litigation Payable | (1,224 | ) | - | |||||||||
| Net cash used in operating activities | (5,287 | ) | (2,737 | ) | ||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchase of property, plant and equipment | (7 | ) | - | |||||||||
| Net cash used in investing activities | (7 | ) | - | |||||||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds from Paycheck Protection Program Loan | - | 890 | ||||||||||
| Proceeds from issuance of common stock- Aspire financing | ||||||||||||
| net of issuance costs | - | 2,635 | ||||||||||
| Proceeds from issuance of common stock- AGP At The Market offering, | ||||||||||||
| net of issuance costs | - | 243 | ||||||||||
| Net cash provided by financing activities | - | 3,768 | ||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (14 | ) | 32 | |||||||||
| Net (decrease)/increase in cash, cash equivalents and restricted cash | (5,308 | ) | 1,063 | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 83,634 | 10,930 | ||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 78,326 | $ | 11,993 | ||||||||
| Supplemental disclosure of noncash operating activities: | ||||||||||||
| Prepaid financing costs reported in accrued expenses | $ | - | $ | 40 | ||||||||
FAQ
What were the financial results for Ocean Power Technologies in Q1 FY2022?
How much cash does Ocean Power Technologies have as of July 31, 2021?
What strategic initiatives has Ocean Power Technologies undertaken recently?
When is the next conference call for Ocean Power Technologies?
